Compass, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Ben Andrews from Goldman Sachs upgraded the rating on the stock to a Buy and gave it a p3,000.00 price target.
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Ben Andrews has given his Buy rating due to a combination of factors that highlight Compass’s potential for growth and value. He points out that Compass has a robust long-term growth strategy for EBITA, which is not yet fully appreciated in its current market valuation. This is coupled with a strong foundation for expansion in Europe and an improved returns profile.
Additionally, the stock has seen a decrease in its valuation this year, making it an attractive investment opportunity at a discount. Compass is recognized as a leader in the contract catering industry, known for its defensive nature and consistent growth. The company is expected to achieve approximately 7% organic growth annually from FY25 to FY29, alongside a low double-digit organic EPS compound annual growth rate and a 2.5% dividend yield, which positions it as a high-quality investment with strong returns.
Andrews covers the Consumer Cyclical sector, focusing on stocks such as Entain plc, Flutter Entertainment PLC, and Compass. According to TipRanks, Andrews has an average return of 8.0% and a 53.57% success rate on recommended stocks.
In another report released on November 6, Kepler Capital also maintained a Buy rating on the stock with a p2,950.00 price target.